What's Changing From April 1st

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As April dawns, a few important changes come into effect across various sectors in India. From essential medicines to the way you pay tolls, staying informed can ensure a smooth transition. This blog post dives into the key updates you need to
be aware of:

1. FASTag Mandates and KYC Compliance

FASTags have revolutionized toll payments, offering a seamless and cashless experience. However, from April 1, 2024, non-compliance with KYC (Know Your Customer) norms can lead to deactivated FASTags. This means:

  • What's New: Banks will now deactivate FASTags linked to accounts where KYC details haven't been updated as per RBI regulations.
  • Impact: Deactivated FASTags will result in double toll payments at plazas. Vehicles without FASTags already incur a penalty, so a deactivated tag translates to paying double the toll amount.
  • Action Required: FASTag users should ensure their KYC information is up-to-date with the bank linked to their FASTag account. This typically involves verifying your PAN card, address proof, and identity documents.

2. Price Revisions for Essential Medicines

The Department of Pharmaceuticals has announced revised ceiling prices for 65 essential drug formulations, effective from April 1, 2024.

  • What's New: Prices for essential medications, including painkillers, antivirals, antibiotics, antimalarials, and drugs for chronic conditions like type 2 diabetes, have been adjusted.
  • Impact: This revision reflects a 0.00551% inflation in the National List of Essential Medicines (NLEM) prices, based on changes in the Wholesale Price Index (WPI). The expectation is that these adjustments will be minimal and shouldn't significantly impact consumers.
  • Action Required: No specific action is needed from consumers. However, it's always a good practice to check the medication price before purchasing, especially if you buy without a prescription.

3. E-filing of Insurance Policies

While not a mandatory requirement yet, the Insurance Regulatory and Development Authority of India (IRDAI) has encouraged insurance companies to offer e-filing of policies from April 1, 2024.

  • What's New: Insurance companies may introduce online portals for policyholders to electronically file new proposals, renewals, and modifications. This can potentially streamline the insurance buying and servicing process.
  • Impact: The rollout of e-filing might vary across companies. While some insurers might offer a fully functional e-filing system by April, others may take some time. Keep an eye out for communication from your insurance provider regarding e-filing options.
  • Action Required: Contact your insurance company to check if they offer e-filing and how to access the online portal. E-filing can expedite policy purchases and make managing your insurance more convenient.

4. No Changes in Income Tax Slabs

There has been some speculation about potential changes to income tax slabs. However, the Ministry of Finance has clarified that there will be no revisions to income tax slabs for the 2024-25 assessment year.

  • What's New: The existing income tax slabs and rates will continue for the upcoming financial year.
  • Impact: This provides taxpayers with some stability in terms of their tax liability. You can continue using the previous year's tax filing methods.
  • Action Required: Stay updated on any potential announcements regarding tax deductions or exemptions throughout the year.

5. Other Potential Changes (Keep an eye out for these!)

  • EPFO Account Transfers: The government might introduce a system for automatic transfer of Provident Fund (PF) amounts when switching jobs. This can eliminate the need for manual PF transfer requests.
  • Revised GST Returns: There might be a possibility of filing revised GST returns from April 2025 onwards. This can offer businesses more flexibility in correcting any errors in their GST filings.

Staying Informed: Your Key Takeaway

These are some of the key changes coming into effect from April 1, 2024. Remember, staying informed is crucial. Here are some tips:

  • Follow official government websites and news sources.
  • Subscribe to updates from your bank, insurance company, and other relevant institutions.
  • Consult a tax advisor for any queries related to income tax filing.

By being aware of these changes, you can ensure a smooth transition and avoid any potential hassles. Let's navigate the new together!

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